Chinese hotel operator H World Q2 revenue rises 4.5%
Overview
H World Q2 revenue rises 4.5% yr/yr to RMB6.4 bln, near high end of company's guidance
Net income for Q2 increases 44.7% yr/yr to RMB1.5 bln, driven by Legacy-Huazhu
Manachised and franchised revenue surges 22.8% yr/yr, exceeding company's guidance
Outlook
H World expects Q3 revenue growth of 2%-6% year-over-year
Company forecasts 4%-8% Q3 revenue growth excluding DH
Manachised and franchised revenue to grow 20%-24% in Q3 2025
Company cautious on near-term outlook due to macro uncertainties
Result Drivers
HOTEL TURNOVER - Increased 15% yr/yr to RMB26.9 bln in Q2 2025, with Legacy-DH segment contributing an 8.9% rise
REVENUE GROWTH - Revenue rose 4.5% yr/yr to RMB6.4 bln, near high end of guidance, driven by manachised and franchised revenue growth of 22.8% yr/yr
ASSET-LIGHT STRATEGY - CEO Jin Hui attributes robust operating profit growth to network expansion and asset-light strategy despite modest RevPAR decline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| RMB 6.43 bln |
|
Q2 RevPAR |
| RMB 235 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
Wall Street's median 12-month price target for H World Group Ltd is $43.00, about 22.4% above its August 19 closing price of $33.35
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nGNX88k1Xx
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